The World Bank says that India’s GST law is a bit complicated by the tax system of other countries around the world. World Bank has said this in a report.
New Delhi (Business Desk) On July 1, 2017, the World Bank has raised many questions on the goods and services tax law (GST) implemented throughout the country.World Bank Reports on GST rates and GST System in India.
The World Bank said in its report that complexity in India’s GST is because tax rates are high and tax rates are high, while in other similar countries it is not so.
Let me tell you that the five rates in GST are fixed for 0, 5, 12, 18 and 28 percent, While some goods are not within the purview of the tax, then some zero tax rates are available on the tax (the exporters can claim refunds for the tax on inputs during the production process).
World Bank says it is unfavorable against other countries of the world where GST has only one rate.
For example, the report said that the highest rate of tax in India is 28 percent, it is the second highest tax rate, compared to 115 countries and the highest in Asia. This report says that GST has a rate of 49 countries in the world, while 28 countries are such Where two rates of GST are prevalent and only five countries are in India, where there are 5 rates of tax. The countries that use four or more rates of GST are Italy, Luxembourg, Pakistan, and Ghana. Accordingly, India is the country with the highest GST rates in the world.